Dealing with a difficult client

“It’s easy to just say, ‘Find someone else’,” says Rosemary Smyth, owner and coach with Victoria-based Rosemary Smyth and Associates, which specializes in working with financial advisors. Instead, it’s better to take the view that you will learn from this experience and, ultimately create a stronger and more engaging client relationship.

First, Smyth says, you should make the distinction between a difficult client and a demanding client. Smyth differentiates the two types this way: a difficult client is someone who has an issue with you or your business due to an isolated incident; a demanding client relates to an ongoing problem, such as constant telephone calls and emails or unrealistic expectations.

Follow these tips to sort things out with a difficult client:

> Think like a peacekeeper
Give the resolution chance at a positive outcome by acting like a mediator.

Instead of just saying to the client: “This is what will happen and that’s final,” Smyth says, look for a way to resolve the issue that makes everyone happy.

> Keep the conversation open
Watch your tone when talking about the contentious issue with your client.

Do not cross-examine your client, Smyth says. Instead of being accusatory, ask open-ended questions that will create a conversation.

> Clarify what happened
Arrange a meeting to sit down together and discuss the situation with your client.

Find out his or her perspective on the situation that is causing the difficulty, Smyth says. For example, it might have been a question of clarity concerning documentation.

Once the client has finished explaining himself or herself, Smyth says, paraphrase what was said to show that you understand. Then, explain your side of the story.

> Consider possible changes
Once you and your client are on the same page, discuss anything you and your team should be doing differently in order to avoid the situation in future.

Ask your client what he or she would like to see happen differently, Smyth says. Ask whether it’s a matter of needing more information from you or more explanation as to how your processes work.

> Take responsibility
Avoid playing the “blame game” and accept that mistakes happen.

Smyth points out that most advisors work under larger organizations, and errors will occur whether or not they are the fault of someone at the advisor’s office. Accept responsibility for the situation even if the error arose as a result of events beyond your control.

> Find the lesson
Always look for something you can learn from the situation.

For example, Smyth says, you might have found that your clients make decisions differently from the way you do. So, perhaps you should take a different approach when discussing certain issues with them.

Next: Dealing with a demanding client.